Former CFTC Chairman Chris Giancarlo shared his observations on U.S. policy and its potential impact on the Asia-Pacific region in a tweet from Tokyo. He highlighted the Japan Times headline, “Crypto tumult in the U.S. might be a boon for Japan,” referring to the ongoing court cases between the SEC and major crypto exchanges Binance and Coinbase. These regulatory battles in the U.S. have raised concerns about the impact on the global market.
The recent collapse of the U.S. crypto exchange FTX, founded by Sam Bankman-Fried (SBF), had already created unease within the industry. However, some insiders in Japan perceive an opportunity amid the turmoil in the U.S. They believe Japan can strengthen its position as a crypto-friendly nation with its established legal framework. Chris Giancarlo, a vocal supporter of the crypto industry, has expressed his favourable stance on digital currencies, including his controversial statement that Ripple‘s XRP should not be classified as a security, an issue currently being intensely debated in U.S. regulatory circles.
Industry players in Japan and Hong Kong, relying on their existing regulatory framework, anticipate minimal impact from the ongoing crypto storm in the U.S. Coinbase CEO Brian Armstrong responded to Giancarlo’s statement, saying, “The U.S. is squandering an early lead, in part because SBF embarrassed some politicians and regulators who now want to look tough on crypto.“